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December 2016

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American Apparel & Footwear Association (AAFA) President and CEO Kevin M. Burke welcomed the 405-16 vote by the U.S. House of Representatives approving legislation (HR 674) that would repeal current regulations requiring federal, state, and local governments to withhold three percent of money due to government contractors until contractors have fully paid their taxes. Unless repealed, the 3% withholding requirement goes into effect on January 1, 2013. The House-passed bill now goes to the U.S. Senate, which earlier rejected a similar proposal.

“I applaud the House for lifting overly burdensome rules that seem to serve no other purpose than to threaten the jobs of hardworking Americans in the domestic U.S. textile, apparel, and footwear industry. The workers in our industry are responsible for outfitting our service men and women who protect us all around the world.

“Just as the U.S. government requires these businesses to meet their tax obligations, workers have the expectation of being paid for their work. These businesses may be forced to lay off workers if they cannot meet their payroll due to loss of immediate revenue from having to pay their taxes earlier than necessary.

“The Senate should move quickly to pass this legislation in order to restore certainty for the workers in our industry.”

The American Apparel & Footwear Association (AAFA) is the national trade association representing apparel, footwear and other sewn products companies, and their suppliers, which compete in the global market. AAFA's mission is to promote and enhance its members' competitiveness, productivity and profitability in the global market by minimizing regulatory, commercial, political, and trade restraints.